A factor of expanding globalization is reducing trade barriers so that goods and services can move around the world easily. This is called Trade Liberalization.
In order for liberalization to take place these things must be removed:
Tariffs
Quotas
Regulations
>When two countries agree to eliminate all tariffs and taxes on goods and services traded between them, the result is called Free Trade.
>Creates jobs, uses resources, and reduces the cost of consumer goods.
An example of a trade liberalization can be NAFTA
NAFTA:
Went into effect 1998
Expanded to include Mexico in 1994
Eliminated all trade barriers between these three countries
Different opinions arose because this was the first free trade agreement between countries with such different levels of development
In order for liberalization to take place these things must be removed:
- Tariffs
- Quotas
- Regulations
>When two countries agree to eliminate all tariffs and taxes on goods and services traded between them, the result is called Free Trade.>Creates jobs, uses resources, and reduces the cost of consumer goods.
An example of a trade liberalization can be NAFTA
NAFTA: